4-3      Break-even revenue for the multiple-product firm can a.       be calculated by dividing total fixed cost by the overall contribution margin ratio. b.       be calculated by dividing segment fixed cost by the overall contribution margin ratio. c.       be calculated by dividing total fixed cost by the overall variable cost ratio. d.       be calculated by multiplying total fixed cost by the contribution margin ratio. e.       not be calculated; break-even revenue can only be computed for a single-product firm.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 16MC: Break-even for a multiple product firm. can be calculated by dividing total fixed costs by the...
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4-3      Break-even revenue for the multiple-product firm can

a.       be calculated by dividing total fixed cost by the overall contribution margin ratio.

b.       be calculated by dividing segment fixed cost by the overall contribution margin ratio.

c.       be calculated by dividing total fixed cost by the overall variable cost ratio.

d.       be calculated by multiplying total fixed cost by the contribution margin ratio.

e.       not be calculated; break-even revenue can only be computed for a single-product firm.

 

 

 

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